On 24 December 2025, bp agreed to sell a 65% shareholding in Castrol to Stonepeak at an enterprise value of $10.1 billion. The transaction follows bp’s strategic review of Castrol and is expected to deliver total net proceeds of approximately $6.0 billion to bp.
The expected proceeds include around $0.8 billion related to the pre-payment of future dividend income over the short to medium term on bp’s retained 35% stake, alongside other adjustments. bp said the proceeds will be fully used to reduce net debt.
Based on the announced terms, the implied total equity value of Castrol is $8.0 billion after deducting joint venture minority interests of $1.8 billion and debt-like obligations of around $0.3 billion, subject to customary adjustments. bp noted that a significant proportion of the minority interests relates to the shareholding in the publicly listed Castrol India Limited.
Upon completion, a new incorporated joint venture will be formed with 65% ownership by Stonepeak and 35% by bp. bp said the retained stake maintains exposure to Castrol’s growth plan, with optionality to sell its 35% stake after a two-year lock-up period. The transaction is expected to be completed by the end of 2026, subject to regulatory approvals.
The sale forms part of bp’s previously announced $20 billion divestment programme, bringing completed and announced divestment proceeds to date to around $11.0 billion. BP said all proceeds from the transaction will be allocated to reducing net debt towards its $14–18 billion target by the end of 2027; net debt stood at $26.1 billion at the end of 3Q 2025.
After closing, bp expects to treat its retained stake in Castrol as an equity-accounted investment and does not expect to recognize earnings or receive a dividend in the short to medium term, with Stonepeak holding a preference on distributions. bp will appoint two board seats to the new joint venture on closing.
